This is a thought-provoking discussion regarding the financing of South Africa's transition.
Participants in the Panel
- Dr. Nthabiseng (Nthabi) Mohlakoana (lecturer at the Centre for Complex Systems in Transition (CST))
- Dr. Chantal Naidoo (leading a support program on energy transitions funded by the European Climate Foundation)
Key discussions
- Chantal highlighted a range of critical finance-related issues related to the transition. She emphasized several key points:
- The role of the financial system is often limited to securing additional finance for projects, potentially overlooking the broader transition context.
- In some cases, financiers might drive new pathways based on their return demands, rather than aligning with the needs and direction of the new pathways.
- Financial responses often tend to be shallow and short-term in comparison to the evolving demands of the new system.
- Premature or inappropriate adoption of financial options can be a risk, particularly if they are unsuited to the unique context of South Africa.
- There is a potential risk of the financial system inadvertently creating "sustainable pathways" that are ultimately unsustainable.
Chantal's presentation also touches on the enduring relationship between finance and sustainability, the unique characteristics of this connection, South Africa's journey in energy transition, and insights derived from gathered data. Chantal stressed the vital importance of constructive dialogue between policymakers and financial intermediaries in guiding and advancing the energy transition to its current stage.
- Nthabiseng's Key Questions: Following Chantal's presentation, Dr. Nthabiseng Mohlakoana posed a series of important questions:
- What exactly constitutes the Just Energy Transition in the South African context?
- What are the realistic possibilities for achieving a sustainable transition?
- How can policymakers and financial intermediaries collaborate effectively to work toward the energy transition goal?
- How does the energy transition align with the broader transition process taking place in South Africa, especially in the context of Eskom, decommissioning, and the need for reprogramming?
These questions raised by Nthabiseng lay the groundwork for a deeper exploration of the complexities and challenges inherent in South Africa's energy transition, ultimately guiding the path towards a more sustainable and just future.
